Global slide, Bihar polls subdue Indian markets
Bombay Stock Exchange

Global slide, Bihar polls subdue Indian markets

Mumbai, October 28, 2020

Heavy selling pressure, triggered by global cues, along with local political developments, led to the Indian equity benchmark indices plunging on Wednesday.

The slide in domestic markets came after shares around the world plunged as coronavirus infections grew rapidly in Europe and the US, igniting fears of possible imposition of strict lockdown measures that could damage the already fragile economic recoveries.

The European markets touched a five-month low.

Here, the Nifty50 on the National Stock Exchange closed at 11,729.60, lower by 159.80 points, or 1.34 per cent, from its previous close.

The Sensex closed at 39,922.46 points, lower by 599.64 points, or 1.48 per cent, from its previous close of 40,522.10.

"Uncertainty around US Presidential elections has succeeded in triggering a correction in global markets already reeling under Covid-19 spread," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"The level of 11,661 remains a crucial support on the downside."

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said: "On the domestic side, weak global cues over-shadowed optimism from strong domestic earnings reports."

"Going ahead, the market is likely to remain under pressure, till the US elections conclude. The monthly F&O expiry on Thursday will further add to the volatility."

Vinod Nair, Head Of Research at Geojit Financial Services, said: "We are falling in tandem with the weak global trend as the world's economic recovery will slow down this quarter with implications on world equities. While domestically, the market is watching the developments in the Bihar assembly elections."

IANS

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